# Fed’s go-slow approach likely to keep USD weaker, for now - OFX (US)

> Jay Powell's Jackson Hole speech was seen as balanced, leaving the Fed split between hawks favoring faster tapering and doves wary of derailing the recovery. Hedge funds had bet heavily on a stronger dollar after expecting a hawkish message, and the article argues the Fed's go-slow stance will keep the dollar weaker for now.

- Date: 2021-10-28 · published 2021-10-28T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/44743-fed-s-go-slow-approach-likely-to-keep-usd-weaker-for-now-ofx-us
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A slower Fed tightening path points to a softer dollar, which generally supports dollar-priced commodities and US export competitiveness, though the effect on feed input costs is modest.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-08-28 | [AUD/USD: Fed’s Move To Keep Aussie Stronger For Longer - Currency Live](https://feedsoft.ai/events/51896-aud-usd-fed-s-move-to-keep-aussie-stronger-for-longer-currency-live.md) | -0.5% | +1.0% |
| DXY | 2020-12-11 | [USD: FOMC action to keep dollar on weaker footing – MUFG — Octa](https://feedsoft.ai/events/49846-usd-fomc-action-to-keep-dollar-on-weaker-footing-mufg-octa.md) | -0.7% | -0.4% |
| DXY | 2020-09-11 | [Lower-for-longer rates from the Fed point to a weaker-for-longer dollar](https://feedsoft.ai/events/51287-lower-for-longer-rates-from-the-fed-point-to-a-weaker-for-longer-dollar.md) | -0.4% | +0.2% |
| DXY | 2020-03-23 | [EUR/USD: FED Unlimited QE Sees Euro Gains But Nordea Unwilling To Call For Weaker Dollar Outlook](https://feedsoft.ai/events/11349-eur-usd-fed-unlimited-qe-sees-euro-gains-but-nordea-unwilling-to-call-for.md) | -2.0% | -1.7% |
| DXY | 2018-09-30 | [DXY to come off: we like to buy into any dip below 1.1550 in EUR/USD - Nordea - Forex Crunch](https://feedsoft.ai/events/63254-dxy-to-come-off-we-like-to-buy-into-any-dip-below-1-1550-in-eur-usd-nordea.md) | +0.7% | +1.8% |

## Sources

- ofx.com: https://www.ofx.com/en-us/forex-news/articles/feds-go-slow-approach-likely-to-keep-usd-weaker/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.